The Swiggy IPO is structured as a book-built issue, with a total size of Rs 11,327.43 crores. This comprises a fresh issuance of 11.54 crore shares, amounting to Rs 4,499.00 crores, along with an offer for sale (OFS) of 17.51 crore shares, aggregating to Rs 6,828.43 crores.

The IPO will be open for subscription from November 6 to November 8, 2024, with allotment anticipated on November 11, 2024. Swiggy is set to debut on the BSE and NSE, with the listing date tentatively scheduled for November 13, 2024.

The IPO price band has been established between ₹371 and ₹390 per share.

Swiggy IPO Details

Swiggy IPO Timeline (Tentative Schedule)

Swiggy IPO opens on November 6, 2024, and closes on November 8, 2024.

Promoters and Shareholdings in Swiggy

Swiggy Limited does not have a traditional promoter as defined by SEBI ICDR Regulations and the Companies Act. Consequently, there is no “promoter group” in the usual sense.

However, key shareholders and entities with director nomination rights play an influential role:

• MIH India Food Holdings B.V. holds the largest stake, with 30.95% of the issued and paid-up equity share capital on a fully diluted basis. MIH has the right to nominate one director to the board.
• Sriharsha Majety, Swiggy’s co-founder, owns 6.23% on a fully diluted basis.
• Softbank retains the right to nominate one director, provided it maintains a minimum 5% shareholding on a fully diluted basis.

Additional major shareholders with stakes over 1% include:

• Lakshmi Nandan Reddy Obul – 1.76%
• Rahul Jaimini – 1.14%
• Elevation Capital V Limited – 3.10%
• Accel India IV (Mauritius) Limited – 4.71%
• Norwest Venture Partners VII-A-Mauritius – 3.41%
• Inspired Elite Investments Limited – 3.88%
• DST EuroAsia V B.V. – 3.23%
• Coatue PE Asia XI LLC – 2.23%
• Tencent Cloud Europe B.V. – 3.64%
• HH BTPL Holdings II Pte. Ltd. – 1.16%

The shareholding pattern highlights the presence of key investors and entities that, while not formal promoters, hold substantial influence and contribute to Swiggy’s governance structure.

About Swiggy Company

Swiggy, a leading force in India’s hyperlocal commerce sector, was founded as Bundl Technologies Private Limited on December 26, 2013, in Hyderabad, Andhra Pradesh. Initially focused on logistics, Swiggy launched its food delivery business in 2014, marking its entry into India’s growing online food delivery market.

The company’s first major funding round in 2015 highlighted investor confidence, enabling rapid expansion. By 2019, Swiggy operated in over 500 cities.

In 2020, Swiggy broadened its service offerings with the launch of “Swiggy Instamart” for grocery delivery and “Swiggy Genie” for pick-up and drop-off services, underscoring its commitment to a comprehensive hyperlocal commerce model. This innovation continued in 2021 with the launch of “Swiggy One,” a membership program offering discounts and free deliveries.

Swiggy further expanded in 2022 by acquiring Dineout, integrating restaurant bookings and payments for dine-in experiences, and growing Swiggy Instamart to cover 25 cities through over 400 dark stores.

Continuing its strategic growth, Swiggy introduced “Swiggy Minis” in 2022 to connect users with more local businesses. In 2023, Swiggy partnered with HDFC Bank to launch a co-branded credit card and acquired Lynks Logistics Limited, boosting logistical capabilities. Swiggy also launched “Swiggy Mall” to offer users in-app retail shopping, expanded its EV fleet to 7,500, and reached 5.7 million members in Swiggy One by 2024.

In 2024, Swiggy transitioned to a public limited company as “Swiggy Limited,” signaling its preparation for an Initial Public Offering (IPO). The IPO includes a fresh issue of shares and an offer for sale by existing shareholders, positioning Swiggy to further expand in India’s competitive hyperlocal commerce sector.

Key Highlights of Swiggy’s History:

• Founded in 2013: Started as Bundl Technologies Private Limited, initially focused on logistics.
• Pioneered Online Food Delivery: Launched food delivery in 2014, establishing Swiggy as a market leader.
• Growth and Diversification: Expanded to 500+ cities, added grocery delivery, dine-in services, and hyperlocal commerce.
• Continuous Innovation: Introduced “Swiggy One,” expanded EV fleet, launched “Swiggy Mall,” and partnered with HDFC for financial services.
• Transition to Public Limited Company: Converted to Swiggy Limited in 2024, paving the way for its IPO and marking a new chapter in its growth journey.

Swiggy IPO Objectives

Swiggy has outlined its primary objectives for the IPO proceeds, focusing on enhancing operations, expanding strategic areas, and improving technological capabilities to strengthen its position in India’s hyperlocal commerce market.

Key IPO Objectives:

• Investment in Scootsy Logistics Private Limited: A substantial portion of the IPO funds will go toward Scootsy, Swiggy’s key subsidiary, with specific goals:
  • Debt Reduction: Repaying or pre-paying existing debt to improve Scootsy’s financial stability.
  • Expansion of Dark Stores for Quick Commerce: Swiggy aims to expand “Instamart” by adding more dark stores through new setups and lease payments, aligning with its focus on rapid commerce growth.
• Investment in Technology and Cloud Infrastructure: To support Swiggy’s growth, funds will enhance its technology infrastructure by:
  • Scaling and Reliability: Expanding platform capacity to manage increasing demand and ensure a seamless experience.
  • Data Security and Privacy: Strengthening data protection and compliance with security regulations.
  • Innovation and Feature Development: Fueling the creation of new features and services to meet evolving customer needs.
• General Corporate Purposes: A portion of funds will be reserved for corporate flexibility, allowing Swiggy to handle unforeseen expenses, strategic initiatives, and manage working capital.
• Funding for Potential Acquisitions: Swiggy has earmarked funds for unidentified acquisitions to potentially expand its operations. However, this allocation will not exceed 35% of the gross IPO proceeds. Should additional funds be required, Swiggy may consider alternative sources, including internal accruals or debt financing.

Swiggy’s IPO objectives underscore its plans to leverage these proceeds to strengthen its market presence through core investments, technological advancements, and strategic growth opportunities, solidifying its position as a leader in the evolving hyperlocal commerce space in India.

Swiggy’s Future Plans

• Geographic Expansion and Service Enhancement: Swiggy aims to expand its presence across new locations, continuously refining its offerings to better meet user demands and maintain a strong market position.
• Strengthening Partner Network: The company is actively working to attract more restaurant, merchant, brand, and delivery partners to build a robust network, enabling seamless service and greater reach.
• Boosting User Engagement with “Swiggy One”: Swiggy plans to utilize its membership program, “Swiggy One,” to deepen user engagement and foster loyalty through exclusive benefits and discounts.
• Investing in Technology and Infrastructure: To support its expansion and drive operational efficiency, Swiggy is focused on enhancing its technology and cloud infrastructure, paving the way for future growth and innovation.

Swiggy Limited IPO FAQ

1. What is the purpose of the Swiggy Limited IPO?

The main purpose of the IPO is to raise capital for Swiggy Limited’s future growth and expansion. This includes funding for initiatives like:

• Fresh Issue: Issuing new equity shares worth up to ₹ 37,500 million.
• Pre-IPO Placement: Potentially raising up to ₹ 7,500 million before the IPO. The final Fresh Issue size will be adjusted based on the pre-IPO placement.

2. Who are the Selling Shareholders in the IPO?

The Selling Shareholders include a mix of entities and individuals:

• Corporate Selling Shareholders: Including Ark India Food-Tech Private Investment Trust.
• Individual Selling Shareholders: Such as P.R. Venketrama Raja, Lakshmi Nandan Reddy Obul, and Sriharsha Majety.

3. How will the IPO shares be allocated to different investor categories?

The IPO shares will be allocated as follows:

• Qualified Institutional Bidders (QIBs): 50% of the offer.
• Non-Institutional Bidders (NIBs): 15% of the offer.
• Retail Individual Bidders (RIBs): 35% of the offer.

Within the NIB category, there is a further sub-allocation:

• Applicants with bids up to ₹1,000,000: Two-thirds of the NIB portion.
• Applicants with bids over ₹1,000,000: One-third of the NIB portion.
• Unsubscribed portions in either sub-category can be allotted to the other.

4. What are the key financial highlights of Swiggy Limited?

Key financial data for the company includes:

• Revenue Growth: Steady revenue growth over the past few years.
• Profitability: Currently operating at a loss, but aiming for profitability in the future.
• Assets: Strong asset base including cash, financial assets, and property, plant, and equipment.
• Equity: Significant equity capital.

Detailed financials can be found in the Updated Draft Red Herring Prospectus (UDRHP-I).

5. What are Swiggy Limited’s key business metrics?

Swiggy closely tracks metrics like:

• Gross Order Value (GOV): Total value of orders processed.
• Monthly Transacting Users (MTU): Number of users who make transactions each month.
• Average Monthly Transacting Delivery Partners: Reflecting the size and capacity of their delivery network.

These metrics provide insights into Swiggy’s operational scale and customer engagement.

6. What are the key risks associated with investing in Swiggy Limited?

Some potential risks for investors include:

• Competition: Intense competition in the food delivery and online marketplace sector.
• Regulatory Changes: Potential impact of evolving regulations governing online platforms.
• Profitability Challenges: The path to achieving and sustaining profitability might be complex.

7. What is Swiggy Limited’s intellectual property portfolio?

Swiggy owns and utilizes various intellectual property assets, including:

• Trademarks: Registered trademarks for brands like Swiggy, Swiggy Instamart, and Swiggy Genie.
• Other Intellectual Property: Protection for slogans and brand elements.

This IP portfolio helps Swiggy protect its brand and market position.

8. Where can I find more information about the Swiggy Limited IPO?

The most comprehensive information is available in the Updated Draft Red Herring Prospectus (UDRHP-I) filed by Swiggy Limited. You can also find information on the websites of the Securities and Exchange Board of India (SEBI) and the stock exchanges where Swiggy will be listed (BSE and NSE).